Irish Limited Partnership
Tax planning advantages
An Irish L.P. with foreign members, which does not carry on a business in Ireland and derives no income on territory of Ireland, is not liable to tax in Ireland. According to the tax laws of Ireland, a L.P. is not considered as a separate subject of taxation. The founders should pay taxes from the profits received by the L.P. in their place of residence in proportions according to their share of interests belonging to them in the L.P. As an example, an Irish L.P. with a General Partner resident in offshore, such as in the Seychelles, and which receives the income only outside of Ireland, will not be assessed for tax. Taxes will be paid by the members in the country of their residence if it is stipulated by the legislation of that specific country.
The favourable tax regime of L.P. companies does not eliminate the requirements for preparation of financial statements. Every L.P. is obliged to prepare financial statements, and the relevant Partnership Tax return must be filed annually with Irish Tax Revenue.
The Irish Partnership Act
General partnerships
Limited partnerships
Investment limited partnerships
Setting up a General Partnership in Ireland
General partnerships in Ireland can be divided into:
- informal partnerships concluded for an indefinite period of time;
- formal partnerships for limited periods of time.
General Irish Partnerships – taxation
From a taxation point of view, the Irish general partnership is a very advantageous type of company. Even if the partnership must register for taxation purposes with the Revenue Commissioners, each partner will receive a different tax registration code and thus will be taxed individually on their incomes.
For complete information about the advantages of opening a general partnership in Ireland, do not hesitate to contact our Irish company formation agents. You can also rely on our specialists for tailored accounting services.
Irish Limited Partnerships
The general partner has unlimited liability. The limited partner has limited liability since his liability is limited to the amount of capital contributed by him to the firm.
The role of the limited partner is similar to that of a shareholder in a limited company because their liability is limited to the capital that the partner has contributed, and they have no role in the management of the firm and have no power to bind the firm. The partnership is managed by the general partners who are liable for all debts and obligations of the partnership.
One of the best tax planning solutions
The partnership does not pay corporate tax in Ireland if its partners are not Irish residents and the partnership’s activity is outside of the jurisdiction.
From a taxation point of view, the Irish general partnership is a very advantageous type of company. Even if the partnership must register for taxation purposes with the Revenue Commissioners, each partner will receive a different tax registration code and thus will be taxed individually on their incomes.
For complete information about the advantages of opening a general partnership in Ireland, do not hesitate to contact our Irish company formation agents. You can also rely on our specialists for tailored accounting services.
Our company licensing services
— What we do and do not do
Our company is EXCLUSIVELY engaged in assisting worldwide clients, either individuals or corporate entities, to get duly and properly licensed with local Regulators and Financial Authorities to get respective official licenses to legally carry out their cryptocurrency or financial related business activities.
TBA & Associates Tax Business Advisors does not provide or carry out any sort of Cryptocurrency or Financial services!
Disclaimer: While TBA & Associates strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact TBA Customer Services for advice on your specific cases.